Best Practices For Paying Your Credit Card Bill On Time
With credit card debt at a record high, there’s no better time than now to review your finances with an eye toward avoiding trouble.
Like millions of others, you use a credit card to make a variety of purchases. And like millions of others, you receive a bill once a month.
It’s critical to implement a plan for paying your credit card bill on time, every time. Neglecting to do so will result in late fees, as well as a red mark on your credit score (and that’s not something you want).
Here are some best practices for keeping you on track:
1. Choose a Date That Suits You
When you sign up for a credit card the company will set a due date for you.
While this may be okay at first, don’t be surprised if it doesn’t suit you in the future.
Your credit card company doesn’t want you to miss payments, so they’re more than willing to change your due date upon request.
Your goal is to choose the due date that best suits your finances, such as one that aligns with when you receive your paycheck.
2. Set a Reminder
With so many bills in your life, it can be difficult to remember when your credit card payment is due.
Rather than take a risk, set a reminder in as many places as possible. For example, mark it on your calendar and set an alert in your phone.
Tip: set your reminder for several days in advance of the due date, not the date itself.
3. Regularly Review Your Account
The last thing you need is a surprise when your credit card statement arrives.
When you regularly review your account, you’ll always have a clear idea of what you’ve charged and how much you owe.
This is a particularly important step if you plan on paying your balance in full.
4. Ask for Help
Did you know that your credit card company is more than willing to provide you with reminders?
For example, many companies will send you a text message or email in advance of your due date.
When you combine this with internal reminders, you’ll find it difficult to overlook when your bill is due. Remember, you can never have too many reminders!
5. Look into Auto Pay
It doesn’t work for everyone, but auto pay is one of the best ways to guarantee yourself of always paying on time.
This is exactly what it sounds like. On your due date, your credit card company will automatically deduct the total amount of your bill from your linked checking account.
While this can save you from making a late payment, there are a few things to think about:
You have to opt-in, so ask your credit card company for information on doing so Auto pay is best for people who want to pay their credit card bill in full every month
You must have enough money in your checking account to cover the payment, as to avoid a bank overdraft fee
There is never a good time to pay your credit card bill after the due date. Not only will this habit cost you time and money in the present, but it can also have a negative impact on your long term financial situation.